South Korea Paper Packaging Market Size

South Korea Paper Packaging Market Analysis

The South Korean paper packaging market is expected to grow at a CAGR of 3.25% over the forecast period. Food delivery services and expanding e-commerce are anticipated to continue to develop rapidly over the following years, contributing to the market's expansion.

• People in the country are choosing accessible and sustainable packaging options as they become more conscious of the effects that packaging materials have on the environment and, as a result of their busy lifestyles, demand convenience. The need for paper-based packaging supplies is thus anticipated to increase.
• Taking into account of excessive use of single-use plastics, the government of South Korea 2019 imposed a ban on all types of single-use plastics. Therefore, banning all sorts of packaging and wrapping materials, the food and beverage industry that relies heavily on plastic packaging is since then looking for new methods for packaging products that can keep wet food items such as fish and meat safe but can also withstand transportation stress. Moreover, many such products are made of paper and cardboard that the food and restaurant industry can use in the market. With the ban on plastic packaging material, paper packaging can be a suitable alternative to fill the space.
• The rising retail and e-commerce industries and the growing need for environmentally friendly packaging materials are currently driving the market's expansion. Domestic internet purchases in South Korea reached USD 168.5 billion in 2021, up from USD 135.1 billion in 2020, according to the International Trade Administration of the United States Department of Commerce. The need for secondary and tertiary paper packaging products has increased dramatically as online shopping platforms have proliferated.
• Paper, pulp, resins, paperboard, and adhesives are some of the most popular raw materials utilized by paper packaging industries. The prices of these essential materials have risen dramatically in the flexible packaging business in recent years.
• Consumer packaged goods firms are always looking for new methods to meet consumer wants and improve their offers. They frequently rely on paper packaging firms to develop new products and draw more customers to the store shelf. However, participants in the paper packaging business often need help to keep up with these rapidly shifting expectations. Furthermore, to satisfy these needs, paper packaging companies would need to upgrade their equipment regularly, which will necessitate significant capital investments.
• COVID-19 has led to unforeseen supply chain obstructions and order backlogs, resulting in a spike in paper prices. The competitiveness of enterprises in the flexible packaging industry has been harmed due to this predicament. According to a survey by Korea Rural Economic Institute (KREI) 2020, roughly 33.6% of South Korean households bought meal delivery or takeaway every two weeks due to the COVID-19 Pandemic. A similar proportion of households placed weekly food orders. Only 0.1% of those polled said they purchased takeout or had food delivered daily. Furthermore, there is a strong emphasis on hygiene and product protection. There is a growing demand for paper packaging items in South Korea since they are used just once, are sustainable, and can be recycled.